• 5 minutes Trump will capitulate on the trade war
  • 7 minutes China 2019 - Orwell was 35 years out
  • 12 minutes Glory to Hong Kong
  • 15 minutes ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 1 hour Here's your favourite girl, Tom!
  • 6 hours Peaceful demonstration in Hong Kong again thwarted by brutality of police
  • 6 hours Civil Unrest Is Erupting All Over The World, But Just Wait Until America Joins The Party...
  • 2 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 7 hours Australian Hydroelectric Plant Cost Overruns
  • 4 hours China's Blueprint For Global Power
  • 4 hours Nigeria Demands $62B from Oil Majors
  • 20 hours Brexit agreement
  • 4 hours IMO 2020:
  • 19 mins Canada Election Deadlock?
  • 7 hours Ford Planning Huge North American Charging Network
  • 23 hours The Problem Is The Economy, Not The Climate
  • 21 hours 5 Tweets That Change The World?
  • 19 hours Bloomberg: shale slowing. Third wave of shale coming.
Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

China’s Stock Market Meltdown Not Over Yet

After a few weeks of stabilizing, China’s stock markets are once again in turmoil.

China’s stock markets peaked in June following a dramatic spike over the past year. But then the markets suddenly spiraled out of control in mid-June, falling by around 30 percent in just a few weeks. After aggressive intervention by the Chinese government to stop the bleeding, including suspending large market players from trading for six months, injecting new liquidity into the market, and slashing interest rates, the crisis seemed to subside. Companies also put off fresh IPOs and many suspended trading in order to prevent their share prices from falling further.

By early July, it appeared that a full-blown meltdown had been averted. Two to three weeks of relative stability seemed to confirm that the ship had been righted. Related: 9 Reasons Why We Should Be More Worried About Low Oil Prices

But the worst may not be over. The Shanghai Composite dropped 8.5 percent on July 27, once again throwing China’s financial stability into doubt. The one-day loss was worse than anything experienced last month, and in fact, it was the largest single-day decline since February 2007. The move came following negative data on Chinese industrial profits, portending a broader economic slowdown. With China’s economy sputtering, the highs of the stock markets appear increasingly detached from reality, sparking fears of a bubble bursting. Related: Why Bigger Is No Longer Better In Energy

Now, the chaos appears to be spreading. Due to fears over China’s financial situation, stock markets dropped by more than 2 percent in India, Russia, and Saudi Arabia. Emerging markets across the world are not immune, and the MSCI Emerging Markets Index lost another 1.9 percent on July 27, and absent a dramatic rebound, July will mark the worst monthly performance for the index in three years. Related: Busting The Myth Of A ‘Green Europe’

As one would expect, the bearish sentiment is pushing down oil prices, which hit their lowest levels in months. WTI traded down 1 percent on July 27, falling below $48 per barrel, and Brent dropped below $54.

Russia’s currency, the ruble, continues to lose value as oil prices tank. The ruble hit a four-month low on July 27. Russia’s bond prices dropped again, pushing yields to their highest levels in two months.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play